Investors have been pouring money into retail loan funds in recent months. This has helped fuel demand in the leveraged loan market. Last week, investors placed US$1.02bn into retail loan funds, the second time in three weeks the US$1bn mark was eclipsed. It was also the tenth week out of the last eleven that there was over US$500m invested in loan funds. With the increased demand in loans, it is no surprise the leveraged loan market has kept busy. Through January 27th there has been roughly US$89bn in completed leveraged issuance, the highest for any January dating back to 2006. This comes after December totaled US$105.7bn in issuance, the second highest month of 2016. Issuers have been taking advantage of the frothy market conditions to come back and reprice their loans, trimming as much as 50-75bps off the facility. With more rate hikes expected by the Fed this year, investors could keep pumping money into floating rate loans propelling leveraged loan issuance.
Register to join TRLPC’s 5th Annual Middle Market Loan Conference
Latest news
Rate hike expectations ease as term SOFR curve flattens
The CME six-month Term SOFR rate reached a recent high of 3.979% on July 28 before retreating to 3.837% as…
3Q26: New loan assets rise to 44% of total lending, a 3-year high
New loan assets as a proportion of total US loan volume make up 44% of the 3Q26 pipeline to date,…
North American GPs dominant as fundraising accelerates
Our PEI Private Credit 200 ranking also shows capital raising increasing overall – and accelerating especially fast for the largest…